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Palo Alto Networks (PANW) Laps the Stock Market: Here's Why
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In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $390.54, marking a +2.63% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.83%.
Shares of the security software maker have appreciated by 1.55% over the course of the past month, outperforming the Computer and Technology sector's loss of 7.7%, and the S&P 500's loss of 1.21%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company is expected to report EPS of $0.97, up 4.3% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.31 billion, showing a 33.62% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.18 per share and revenue of $14.17 billion, which would represent changes of +8.85% and +23.42%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Palo Alto Networks is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 91.07 right now. This represents a premium compared to its industry average Forward P/E of 51.27.
One should further note that PANW currently holds a PEG ratio of 6.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security was holding an average PEG ratio of 3.23 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Palo Alto Networks (PANW) Laps the Stock Market: Here's Why
In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $390.54, marking a +2.63% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.83%.
Shares of the security software maker have appreciated by 1.55% over the course of the past month, outperforming the Computer and Technology sector's loss of 7.7%, and the S&P 500's loss of 1.21%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company is expected to report EPS of $0.97, up 4.3% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.31 billion, showing a 33.62% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.18 per share and revenue of $14.17 billion, which would represent changes of +8.85% and +23.42%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Palo Alto Networks is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 91.07 right now. This represents a premium compared to its industry average Forward P/E of 51.27.
One should further note that PANW currently holds a PEG ratio of 6.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security was holding an average PEG ratio of 3.23 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.